Tofutti Brands (TOFB) 10-Q 18 May 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 28, 2015	11-May-15
Document and Entity Information [Abstract]
Entity Registrant Name	TOFUTTI BRANDS INC
Entity Central Index Key	730349
Trading Symbol	tof
Current Fiscal Year End Date	-15
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		5,153,706
Document Type	10-Q
Document Period End Date	28-Mar-15
Amendment Flag	FALSE
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1

Condensed_Balance_Sheets

Condensed Balance Sheets (USD $)	Mar. 28, 2015	Dec. 27, 2014
In Thousands, unless otherwise specified
Current assets:
Cash and cash equivalents	$29	$341	[1]
Accounts receivable, net of allowance for doubtful accounts and sales promotions of $290 and $275, respectively	1,783	1,914	[1]
Inventories, net of reserve of $150 and $150, respectively	1,982	1,852	[1]
Prepaid expenses	43	71	[1]
Deferred costs	102	105	[1]
Total current assets	3,939	4,283	[1]
Fixed assets (net of accumulated depreciation of $4 and $2, respectively)	25	27	[1]
Other assets	16	16	[1]
Total assets	3,980	4,326	[1]
Current liabilities:
Note payable-current	5	5	[1]
Accounts payable	1,440	1,367	[1]
Accrued expenses	227	264	[1]
Deferred revenue	111	114	[1]
Total current liabilities	1,783	1,750	[1]
Note payable - long-term	20	22	[1]
Total liabilities	1,803	1,772	[1]
Commitments and contingencies			[1]
Stockholders' equity:
Preferred stock - par value $.01 per share; authorized 100,000 shares, none issued			[1]
Common stock - par value $.01 per share; authorized 15,000,000 shares, issued and outstanding 5,153,706 shares at March 28, 2015, and 5,153,706 shares at December 27, 2014	52	52	[1]
Additional paid-in capital			[1]
Retained earnings	2,125	2,502	[1]
Total stockholders' equity	2,177	2,554	[1]
Total liabilities and stockholders' equity	$3,980	$4,326	[1]
[1]	Derived from audited financial information.

Condensed_Balance_Sheets_Paren

Condensed Balance Sheets (Parentheticals) (USD $)	Mar. 28, 2015	Dec. 27, 2014
In Thousands, except Share data, unless otherwise specified
Statement Of Financial Position [Abstract]
Allowance for doubtful accounts and sales promotions on accounts receivables (in dollars)	$290	$275	[1]
Inventories, reserves (in dollars)	150	150	[1]
Accumulated depreciation net	$4	$2	[1]
Preferred stock, par value (in dollars per share)	$0.01	$0.01	[1]
Preferred stock, shares authorized	100,000	100,000	[1]
Preferred stock, shares issued			[1]
Common stock, par value (in dollars per share)	$0.01	$0.01	[1]
Common stock, shares authorized	15,000,000	15,000,000	[1]
Common stock, shares issued	5,153,706	5,153,706	[1]
Common stock, shares outstanding	5,153,706	5,153,706	[1]
[1]	Derived from audited financial information.

Condensed_Statements_of_Operat

Condensed Statements of Operations (Unaudited) (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 28, 2015	Mar. 29, 2014
Income Statement [Abstract]
Net sales	$3,143	$3,857
Cost of sales	2,398	2,567
Gross profit	745	1,290
Operating expenses:
Selling	400	386
Marketing	123	127
Research and development	140	189
General and administrative	454	476
Total operating expenses	1,117	1,178
(Loss) income before income taxes	-372	112
Income tax expense	-5	-6
Net (loss) income	($377)	$106
Weighted average common shares outstanding:
Basic and diluted (in shares)	5,154	5,154
Net (loss) income per common share:
Basic and diluted (in dollars per share)	($0.07)	$0.02

Condensed_Statements_of_Cash_F

Condensed Statements of Cash Flows (Unaudited) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 28, 2015	Mar. 29, 2014
Statement Of Cash Flows [Abstract]
Cash flows used in operating activities, net	($310)	($29)
Cash flows used in financing, net	-2
Net decrease in cash and cash equivalents	-312	-29
Cash and cash equivalents at beginning of period	341	214
Cash and cash equivalents at end of period	29	185
Supplemental cash flow information:
Income taxes paid	$5	$6

Liquidity_and_Capital_Resource

Liquidity and Capital Resources	3 Months Ended
	Mar. 28, 2015
Liquidity and Capital Resources [Abstract]
Liquidity and Capital Resources	Note 1:   Liquidity and Capital Resources
	At March 28, 2015, Tofutti Brands, Inc. (“Tofutti” or the “Company”) had approximately $29 in cash compared to $341 at December 27, 2014.  Net cash used in operating activities for the thirteen weeks ended March 28, 2015 was $310 compared to $29 used in operating activities for the thirteen weeks ended March 29, 2014.  Net cash used in operating activities for the thirteen weeks ended March 28, 2015 was primarily a result of the net loss for the period.
	The Company has historically financed operations and met capital requirements primarily through positive cash flow from operations.  However, due to the net losses and cash used in operations in the previous two fiscal years and the first quarter of fiscal 2015, the Company will likely require additional financing in order to accomplish or exceed their business plans for future periods.  The Company continues to implement cost cutting measures in fiscal year 2015 as a way to increase profitability and operating cash flow in future periods.
	The Company’s ability to introduce successful new products may be adversely affected by a number of factors, such as unforeseen cost and expenses, economic environment, increased competition, and other factors beyond the Company’s control.  Management cannot provide assurance that the Company will operate profitably in the future, or that it will not require significant additional financing in order to accomplish or exceed the objectives of its business plan.  Consequently, the Company’s historical operating results cannot be relied on as an indicator of future performance, and management cannot predict whether the Company will obtain or sustain positive operating cash flow or generate net income in the future.

Description_of_Business

Description of Business	3 Months Ended
	Mar. 28, 2015
Description Of Business [Abstract]
Description of Business	Note 2:   Description of Business
	Tofutti is engaged in one business segment, the development, production and marketing of non-dairy frozen desserts and other food products.
	The Company reports on operating segments in accordance with standards for public companies to report information about operating segments and geographic distribution of sales in financial statements.  While the Company has multiple products and or product groups, its goal is to focus on non-dairy foods.  The Company’s chief operating decision maker tracks revenue by product groups, but does not track more granular operating results by product group as many of the ingredients are similar amongst these groups.   As a result, the Company has determined that it has only one operating segment, which is the development, production and marketing of soy-based,  non-dairy frozen desserts, frozen food products and soy-based cheese products.

Basis_of_Presentation

Basis of Presentation	3 Months Ended
	Mar. 28, 2015
Basis Of Presentation [Abstract]
Basis of Presentation	Note 3:   Basis of Presentation
	The accompanying financial information is unaudited, but, in the opinion of management, reflects all adjustments (which include only normally recurring adjustments) necessary to present fairly the Company’s financial position, operating results and cash flows for the periods presented.  Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission.  The condensed balance sheet amounts as of December 27, 2014 are derived from our audited financial statements for the year ended December 27, 2014.  The financial information should be read in conjunction with the audited financial statements and notes thereto for the year ended December 27, 2014  included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission.  The results of operations for the thirteen week period ended March 28, 2015 are not necessarily indicative of the results to be expected for the full year or any other period.
	The Company operates on a fiscal year which ends on the Saturday closest to December 31st.

Recent_Accounting_Pronouncemen

Recent Accounting Pronouncements	3 Months Ended
	Mar. 28, 2015
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	Note 4:   Recent Accounting Pronouncements
	There have been no recent accounting pronouncements or changes in accounting pronouncements during the thirteen weeks ended March 28, 2015, as compared to the recent accounting pronouncements described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 27, 2014, that are of material significance, or have potential material significance, to the Company.

Inventories

Inventories	3 Months Ended
	Mar. 28, 2015
Inventory Disclosure [Abstract]
Inventories	Note 5:   Inventories
	The composition of inventories is as follows:
		March 28,		December 27,
		2015		2014
	Finished products	$	1,463	$	1,290
	Raw materials and packaging		519		562
		$	1,982	$	1,852

Income_Taxes

Income Taxes	3 Months Ended
	Mar. 28, 2015
Income Tax Disclosure [Abstract]
Income Taxes	Note 6:   Income Taxes
	Income taxes are accounted for under the asset and liability method.  Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases.  Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.  The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized.   As of the periods ended March 28, 2015 and December 27, 2014, the Company recorded a full valuation allowance on its deferred tax asset balances.

Earnings_Per_Share

Earnings Per Share	3 Months Ended
	Mar. 28, 2015
Earnings Per Share [Abstract]
Earnings (Loss) Per Share	Note 7:   Earnings Per Share
	Basic earnings per common share has been computed by dividing net income by the weighted average number of  common shares outstanding.  Diluted earnings per common share for the periods ended March 28, 2015 and March 29, 2014 have been computed by dividing net income by the weighted average number of common shares outstanding and common stock equivalents, which include options outstanding during the same period.
	The following table sets forth the computation of basic and diluted earnings per share:
		Thirteen Weeks			Thirteen Weeks
		Ended			Ended
		28-Mar-15			29-Mar-14
	Numerator
	Net (loss) income-basic and diluted	$	(377	)	$	106
	Denominator
	Denominator for basic and diluted earnings per share weighted average shares		5,154			5,154
	(Loss) gain per share Basic and diluted	$	(0.07	)	$	0.02

Fixed_Assets

Fixed Assets	3 Months Ended
	Mar. 28, 2015
Property, Plant and Equipment [Abstract]
Fixed Assets	Note  8:  Fixed Assets
	Fixed assets consist of the following:
		March 28,			27-Dec-14
		2015
	Automobile	$	29		$	29
			29			29
	Less: accumulated depreciation		(4	)		(2	)
	Fixed assets, net	$	25		$	27
	Depreciation expense for the thirteen weeks ended March 28, 2015 and year ended December 27, 2014 was $2 and $2, respectively.  There was no depreciation expense for the thirteen weeks ended March 29, 2014.

Share_Based_Compensation

Share Based Compensation	3 Months Ended
	Mar. 28, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share Based Compensation	Note 9:   Share Based Compensation
	On June 10, 2014, the shareholders of the Company approved the 2014 Equity Incentive Plan (the “2014 Plan”). The 2014 Plan provides for grants of various types of awards that are designed to attract and retain highly qualified personnel who will contribute to the success of the Company and to provide incentives to participants in the 2014 Plan that are linked directly to increases in shareholder value which will therefore inure to the benefit of all shareholders of the Company. The Company intends to rely on a combination of multi-year performance awards, options and other stock-based awards for these purposes.
	The 2014 Plan made 250,000 shares of Common Stock available for awards. As of March 28, 2015, the Company had not issued any awards under the 2014 Plan. The 2014 Plan also permits performance-based 2014 awards paid under it to be tax deductible under Section 162(m) of the Internal Revenue Code of 1986, as amended, as “performance-based compensation.”

Note_Payable

Note Payable	3 Months Ended
	Mar. 28, 2015
Debt Disclosure [Abstract]
Note Payable	Note 10: Note Payable
	In September 2014, the Company obtained an auto loan of approximately $29 from a bank. The loan requires 60 monthly payments of $0.535 through August 2019. Interest is charged at a fixed nominal rate of 4.64%.  The loan is collateralized by the underlying automobile.
		March 28,		December 27,
		2015		2014
	Note payable	$	25	$	27
	Less current maturity		5		5
	Note payable, net of current maturity	$	20	$	22

Sales_by_Geographic_Region_and

Sales by Geographic Region and Product Category	3 Months Ended
	Mar. 28, 2015
Segment Reporting [Abstract]
Sales by Geographic Region and Product Category	Note 11: Sales by Geographic Region and Product Category
	Revenues by geographical region are as follows (in thousands):
		28-Mar-15		29-Mar-14
	Revenues by geography:
	Americas	$	2,909	$	3,368
	Europe		90		286
	Asia Pacific and Africa		47		108
	Middle East		97		95
		$	3,143	$	3,857
	Approximately 95% of the Americas revenue in the 2015 period and 93% in the 2014 period is attributable to sales in the United States. All of the Company’s assets are located in the United States.
	Net sales by major product category (in thousands):
		28-Mar-15		29-Mar-14
	Frozen Desserts	$	839	$	1,190
	Cheeses		2,215		2,552
	Frozen Foods		89		115
		$	3,143	$	3,857

Inventories_Tables

Inventories (Tables)	3 Months Ended
	Mar. 28, 2015
Inventory Disclosure [Abstract]
Schedule of composition of inventories		March 28,		December 27,
		2015		2014
	Finished products	$	1,463	$	1,290
	Raw materials and packaging		519		562
		$	1,982	$	1,852

Earnings_Per_Share_Tables

Earnings Per Share (Tables)	3 Months Ended
	Mar. 28, 2015
Earnings Per Share [Abstract]
Schedule of computation of basic and diluted loss per share		Thirteen Weeks			Thirteen Weeks
		Ended			Ended
		28-Mar-15			29-Mar-14
	Numerator
	Net (loss) income-basic and diluted	$	(377	)	$	106
	Denominator
	Denominator for basic and diluted earnings per share weighted average shares		5,154			5,154
	(Loss) gain per share Basic and diluted	$	(0.07	)	$	0.02

Fixed_Assets_Tables

Fixed Assets (Tables)	3 Months Ended
	Mar. 28, 2015
Property, Plant and Equipment [Abstract]
Schedule of summary of fixed assets		March 28,			27-Dec-14
		2015
	Automobile	$	29		$	29
			29			29
	Less: accumulated depreciation		(4	)		(2	)
	Fixed assets, net	$	25		$	27

Note_Payable_Tables

Note Payable (Tables)	3 Months Ended
	Mar. 28, 2015
Debt Disclosure [Abstract]
Schedule of note payable		March 28,		December 27,
		2015		2014
	Note payable	$	25	$	27
	Less current maturity		5		5
	Note payable, net of current maturity	$	20	$	22

Sales_by_Geographic_Region_and1

Sales by Geographic Region and Product Category (Tables)	3 Months Ended
	Mar. 28, 2015
Segment Reporting [Abstract]
Schedule of Revenues by geographical region	(in thousands):
		28-Mar-15		29-Mar-14
	Revenues by geography:
	Americas	$	2,909	$	3,368
	Europe		90		286
	Asia Pacific and Africa		47		108
	Middle East		97		95
		$	3,143	$	3,857
Summary of net sales by major product category	(in thousands):
		28-Mar-15		29-Mar-14
	Frozen Desserts	$	839	$	1,190
	Cheeses		2,215		2,552
	Frozen Foods		89		115
		$	3,143	$	3,857

Liquidity_and_Capital_Resource1

Liquidity and Capital Resources (Detail Textuals) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 28, 2015	Mar. 29, 2014	Dec. 28, 2014	Dec. 27, 2014		Dec. 29, 2013
Liquidity and Capital Resources [Abstract]
Cash and cash equivalents	$29	$185	$341	$341	[1]	$214
Net cash used in operating activities	($310)	($29)
[1]	Derived from audited financial information.

Description_of_Business_Detail

Description of Business (Detail Textuals)	3 Months Ended
	Mar. 28, 2015
	Segment
Description Of Business [Abstract]
Number of business segments	1

Inventories_Summary_of_composi

Inventories - Summary of composition of inventories (Details) (USD $)	Mar. 28, 2015	Dec. 27, 2014
In Thousands, unless otherwise specified
Inventory Disclosure [Abstract]
Finished products	$1,463	$1,290
Raw materials and packaging	519	562
Inventories, net	$1,982	$1,852	[1]
[1]	Derived from audited financial information.

Earnings_Per_Share_Computation

Earnings Per Share - Computation of basic and diluted earnings (loss) per share (Details) (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 28, 2015	Mar. 29, 2014
Numerator
Net (loss) income-basic and diluted	($377)	$106
Denominator
Denominator for basic and diluted earnings per share weighted average shares (in shares)	5,154	5,154
(Loss) gain per share Basic and diluted (in dollars per share)	($0.07)	$0.02

Fixed_Assets_Details

Fixed Assets (Details) (USD $)	Mar. 28, 2015	Dec. 27, 2014
In Thousands, unless otherwise specified
Property, Plant and Equipment [Line Items]
Fixed assets, gross	$29	$29
Less: accumulated depreciation	-4	-2	[1]
Fixed assets, net	25	27	[1]
Automobile
Property, Plant and Equipment [Line Items]
Fixed assets, gross	$29	$29
[1]	Derived from audited financial information.

Fixed_Assets_Detail_Textuals

Fixed Assets (Detail Textuals) (USD $)	3 Months Ended	12 Months Ended
In Thousands, unless otherwise specified	Mar. 28, 2015	Dec. 27, 2014
Property, Plant and Equipment [Abstract]
Depreciation expense	$2	$2

Share_Based_Compensation_Detai

Share Based Compensation (Detail Textuals) (2014 Equity Incentive Plan (the "2014 Plan"))	Jun. 10, 2014
2014 Equity Incentive Plan (the "2014 Plan")
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common Stock available for awards	250,000

Note_Payable_Summary_of_note_p

Note Payable - Summary of note payable (Details) (USD $)	Mar. 28, 2015	Dec. 27, 2014
In Thousands, unless otherwise specified
Debt Disclosure [Abstract]
Note payable	$25	$27
Less current maturity	5	5	[1]
Note payable, net of current maturity	$20	$22	[1]
[1]	Derived from audited financial information.

Note_Payable_Detail_Textuals

Note Payable (Detail Textuals) (USD $)	1 Months Ended
	Sep. 30, 2014	Mar. 28, 2015	Dec. 27, 2014
	Installment
Debt Instrument [Line Items]
Note payable, principle amount		$25,000	$27,000
Note Payable
Debt Instrument [Line Items]
Note payable, principle amount	29,000
Monthly payments	60
Frequency of periodic payment	monthly
Periodic payment on note payable	$0.54
Fixed interest rate	4.64%

Sales_by_Geographic_Region_and2

Sales by Geographic Region and Product Category (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 28, 2015	Mar. 29, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues by geography	$3,143	$3,857
Americas
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues by geography	2,909	3,368
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues by geography	90	286
Asia Pacific And Africa
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues by geography	47	108
Middle East
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues by geography	$97	$95

Sales_by_Geographic_Region_and3

Sales by Geographic Region and Product Category (Details 1) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 28, 2015	Mar. 29, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	$3,143	$3,857
Frozen Desserts
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	839	1,190
Cheeses
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	2,215	2,552
Frozen Foods
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	$89	$115

Sales_by_Geographic_Region_and4

Sales by Geographic Region and Product Category (Detail Textuals) (Revenue)	3 Months Ended
	Mar. 28, 2015	Mar. 29, 2014
Americas
Revenues from External Customers and Long-Lived Assets [Line Items]
Percentage of revenue	95.00%
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Percentage of revenue		93.00%